Abstract In Indonesia, waste produced during drilling activities of the oil and gas operations are categorized hazardous and toxic referred to the Government Regulation No.18 year 1999 regarding The Hazardous and Toxic Waste Management. This regulation considers drilling mud and cuttings as Hazardous and Toxic Waste. The State Owned Oil Company (PERTAMINA) and its Production Sharing Contractors (PSCs) have a difficulty in implementing the regulation due to technical, scientific, and economical reasons. To solve the problem, PERTAMINA and PSCs proactively proposed and negotiated a ‘self-designed recommended practice’ that technically and economically more practicable and environmentally acceptable for handling drilling wastes. By applying this method, a high cost of treatment may be reduced. Until now, the negotiation is still undergoing. The paper describes the Indonesian Oil and Gas Industry contributions in revising the Government Regulations to be applicable in industry. The proposed revision includes the categorization of hazardous and toxic waste by issuing recommended practices for drilling wastes handling.